By Phil Franz-Warkentin, MarketsFarm
WINNIPEG, July 9 (MarketsFarm) – The ICE Futures canola market was stronger on Thursday, hitting fresh three-month highs as gains in Chicago Board of Trade soybeans and weakness in the Canadian dollar provided support.
Forecasts calling for hot and dry weather in the United States Midwest were behind some of the strength in soybeans that spilled into the canola market, according to a trader.
However, soyoil was softer on the day, which tempered the upside in canola.
Canadian weather was deemed as largely neutral, with recent rains thought to be generally beneficial for crops despite excessive moisture in some localized areas.
About 32,735 canola contracts traded on Thursday, which compares with Wednesday when 17,004 contracts changed hands. Spreading accounted for 17,874 of the contracts traded.
SOYBEAN futures at the Chicago Board of Trade were stronger on Thursday, as updated forecasts calling for hot and dry weather across the Midwest over the next few weeks accounted for some of the buying interest.
Solid weekly old crop export sales of nearly a million tonnes were also supportive, although new crop business at 382,000 tonnes came in slightly below market expectations.
Losses in outside markets, including crude oil, weighed on soyoil and limited the upside in beans.
The United States Department of Agriculture releases its monthly supply/demand report on Friday, and pre-report positioning was a feature. Traders generally anticipate a downward revision to U.S. corn production from earlier estimates and an increase in soybeans. Adjustments to the ending stocks forecasts will also be followed closely.
CORN futures were also underpinned by the shifting Midwestern weather forecasts, with prices touching their highest levels in three months.
Weekly U.S. corn export sales were solid at about a million tonnes of old and new crop business combined.
WHEAT futures were steady to higher, with Kansas City wheat holding near unchanged.
Declining production estimates out of Europe and the Black Sea region remained a primary driver in the wheat market, helping underpin the Chicago and Minneapolis contracts.
However, the advancing winter wheat harvest helped temper the upside in the Kansas City hard red winter wheat market.
Weekly U.S. wheat export sales included 326,000 tonnes of business for delivery during the current year, but net cancellations of 75,000 tonnes of new crop business.